Jet Freight Logistics Ltd (JFLL) is engaged in logistics business having branches located in various cities in India. Company is registered with International air transport association (IATA) agent for Air cargo. JFLL is providing services for Perishable cargo, Time sensitive cargo and also provide Shipment of Hazardous cargo, ODC consignments, pharmaceutical cargo, temperature controlled and general cargo. Its main segment is transport of perishable cargo which includes handling frozen and chilled meat, seafood, vegetables, fruits, cut flowers and pharmaceutical products.
The company has tie ups with various airlines in the world in order to provide tailor made solutions based on customer needs. It offers the best rates along with the best airline options. JFLL has also tied up with various agents across the world who provide services of making the goods reach from international Airport to the respective destinations depending upon the client needs. The company as a freight forwarder take full responsibilities of shipment from the point of receipt to the point of destination .Pricing is based on nature of goods, location, type of service and facility given to the customer. However sector at which the goods are been sent plays a very crucial role in deciding the price of the goods.
Strong Customer Base:
The company has strong customer base including its established relationships with customers lead to stability of demand. It has certain reputed Customers which include Fair Exports, Allanasons Private Limited, Glenmark Pharmaceuticals Limited, Barkat Exports Private Limited etc.
The company’s total revenue has increased 42.10% to Rs 206.67 crore in the fiscal year ended March 31, 2016 from Rs 145.44 crore in the fiscal year ended March 31, 2015. The revenue has increased due to increase in air freight income corresponding to increase in business. The company’s Net Profit has increased 31.28% to Rs 0.96 crore in FY16 as compared to Rs 0.73 crore in the fiscal year ended March 31, 2015 on the back of increase in revenue & better management of resources. The company’s Return on Net worth ratio has increased significantly to 21.69% in FY2016 from 21.16% in FY15 and 19.88% in FY14, indicating that it has utilized the shareholder’s investment well to create returns for them. Currently Major part of the company’s revenue comes from Air freight and the company does not have its exposure in regards to ocean freight, in the near future it is planning to increase its business verticals and also start operations with regards to ocean freight. The company is also planning for expansion of its branches in tier II and tier III cities as there is increase in flight connectivity in these cities and there is more scope of business operations.
Industry Overview
The Indian logistics market recorded $104.10 billion revenue in 2014, and is likely to reach revenues of $150-$160 billion by 2020.Transportation accounts for about 60 per cent of the market revenues. Demand for project logistics services will be particularly strong in the manufacturing sector as the Indian Government’s push to increase the manufacturing output in the country will spur infrastructural activities in this space. The total market opportunity for project logistics services in India is estimated to be $150.86 billion for the 2014-2019. India is strategically placed in a thriving trade zone connecting South East Asia and Oceania on one end and Middle East, Africa and Europe on the other end. India can develop itself as a logistics hub for a few of such types of trades. India also has a strong potential to develop its RoRo (Roll on Roll off) terminals into regional consolidation and distribution centers for automobiles produced in India and South East Asia. Similar hubs can also be developed for container trade and liquid cargo.
The trade logistics network forms the backbone of modern supra-national supply chains. Even if global production were to shift to India due to favourable wage-labour arbitrage, skilled work force, availability of industry specific clusters, reduction in non-tariff barriers amongst other incentives and she becomes the factory of the world a la China, high logistics costs could negate any low cost production advantage. Indian logistics costs are estimated to be at a high of around 13 to 14 per cent of GDP, almost double, when compared with 7 to 8 per cent of GDP in developed countries having superior logistics performance. National competitiveness as a whole would decide the success of ‘Make in India’ strategy, which cannot be divorced from trade logistics performance. Fortunately, the logistics barriers faced by India are self-imposed and are not due to any geographical disadvantage such as being landlocked.
Here is the link of Video interview of Mr. Richard Theknath,. MD Jet Freight Logistics Ltd.
http://indianbusinesstv.net/view/1781/richard-theknath-md,-jet-freight-logistics-pvt-ltd/